tv Countdown to the Closing Bell With Liz Claman FOX Business July 26, 2018 3:00pm-4:00pm EDT
trish: people are more excited right now and feeling better? >> absolutely. we see it across the board. people are optimistic about the here and now in the future. trish: thank you. liz, to you. liz: thank you. the dow is taking flight and staying in the sky on what happened during this hour yesterday with the late session news of a usb you-- we are calling it a breakthrough. president trump is expected to perhaps clarify further what that trade breakthrough looks like this afternoon in granite city, illinois. on the left side of your screen he will speak at that us steel factory that stood shuttered until four months ago. when tariffs on foreign steel kicked in-- well, we are show you what's happening now when the president arrives, so why is the nasdaq and s&p taking it on the chin as the dow jobs? facebook is not a member of the dow 30, but it's
in the s&p and nasdaq and facebook #failed with an epic disaster post earnings call slamming shares today. the pitchforks are out for mark zuckerberg. can this man on your screen and his online retail save the day for tech and the nasdaq? amazon at this hour just 3% feeling the weight of this they spoke smacked down, but that could change right when its latest earnings report comes out in less than 60 minutes from now and call it a soybean feast fire with a potential deal on celebes and liquid natural gas boosting hopes to end tariff battles at least with europe, but can this pull back with you in tariffs really help cool things in china or could the china trade war be just the beginning? it's ramping up and not in a good way with major developments. plus, a fast casual earnings palouse with a
big berkshire bicycle from 130 billion-dollar market watcher and yes, we are less than an hour to the closing bell so let's get to it and start the countdown. ♪ liz: we have a couple breaking news pieces right now at the top of the hour. president trumpet understand is running about 30 minutes behind schedule. right now the president is in route to granite city, illinois, from iowa to tour the us steel factory there. we will bring your pictures when he arrives, but you can see the crowd has assembled and is ready for him. this just hit the tape, breaking his out of greece. the citizen protection minister is now saying greece has serious indications that arson is what was behind those wildfires that raged near athens, on monday with the death toll at 83 people. 83 people killed, hundreds injured, so
that could be arson. there are indications with that just hitting the wires or to the markets, the busiest day of the second quarter earnings season with the dow moving higher following yesterday's late day spike while s&p is down now, officially out of correction territory losing nine points, but the big story is the tech heavy nasdaq lower by 86 points with a loss of 98 points. it appears we are heading back down to that. we are watching it closely and behind the drop it's really facebook with a social media site on track for its worst one-day drop ever. it down 19, you could call that 20% right now, 43 bucks clipped off the share price turned negative for the 2018 year following lower than expected quarterly revenue growth and slower user growth, but also the whole issue about europe and how they are losing more daily active users and
facebook-- if it closes below 174, we are at 172.51, it will officially enter a bear market with facebook dragging down other social media names. twitter down about three and three quarter 8% snap down 1% so we are watching social media. we are also watching the king of beers, not the only two at this hour. budweiser parent company anheuser-busch dropping nearly 5% or $5.23 after announcing its us sales slumped by 3.1% during the second quarter, mostly due to sales of its major brands like budweiser and bud light, dropped 5% by volume. the company announced a new consolidation plan to help lower costs, but remember these beer companies were worried about the aluminum tariffs of 10% that the president instituted on foreign aluminum in february they said this will hurt the beer
industry. right now, we see the beer industry in a bit of trouble. so many of our traders have said the markets have shrugged off trade overall, but certainly not what happened in the 24 hours in the past with the dow clawing its way back during our power as president trump was prepared to make an unscheduled announcement with the eu commission president, jean-claude juncker. markets reacting well today jumping 117 points at the upside. following what-- you can't call it a deal, folks. not a deal. its agreement to perhaps just a cool for the moment, not institute new tariffs on autos and maybe get concessions on the europeans buying more things like let's say soybeans and liquid natural gas. let's get to our traders at the new york stock exchange. putting aside the fact that we are getting second-quarter gdp, the first print of it with the advanced number tomorrow morning, let's look at what's happening today. this jump in the tao is
obviously trade because the nasdaq is not seen it and the nasdaq isn't getting hit by facebook. >> you saw this jump that happened yesterday around 3:30 p.m. so explosive rally based on trade. we are finding new leadership group. we don't want to so rely on tech, at least the same five names so we are finding financial has done well, energy will be a big day tomorrow with exxon and chevron reporting. follow that closely to see if it will give us a leg up. industrials have been strong. that's really what you are seeing, just a rotation into some of these other sectors. liz: it's very easy to get tripped up in the headlines, but i have to say, ira, no one showed more that durable goods number that came out for the month of june it looked very strong autos and aircraft the big-ticket with a jump of six tenths of a percent, very strong
and certainly foretells a very strong economy, no make it does, but in the things we are talking about in the number tomorrow i'm concerned how much that forward buying done by a lot of companies because of the tariffs as they were fearful they would kick in, so just like people buy things in front of a storm i'm wondering how much of that was that and as we get into next quarter we don't get that type of follow through. durable goods certainly strong. americans have shrugged everything off. facebook will probably get a bonus as everyone that owns it-- liz: exactly. we know there are still questions. liquid natural gas, though, the president specifically said-- in fact i want to quote him properly, european union will buy quote vast
amounts of us liquid natural gas. that's moving higher engineer, you brought it up so we brought it up again, they are jumping nearly 2% because they are done name and lng. i guess the european union has to build more terminals before we can really ramp this up. either way what is it for anyone buying into natural gas claimant i think long-term it's very bullish especially for us natural gas whose price is right now are at the store close to but this is not going to happen overnight. of the process to get lng is going to be a major markets, maybe five or seven years down the road for the next couple of years it's a growing industry, but think of this if you're getting into a major markets when it suggest being developed, that has a lot of significant upside. it really does, so i think from a long-term perspective it's not a get rich overnight situation, just like if you bought facebook at the beginning. would not have been great?
well, today they will change the name of facebook to saving facebook, i think. liz: before we go i want to point out the 10 year yield is up again, 2.97%. ira, what is the fed going to do? 's got to continue to raise; right? >> they will continue to raise because now they have a green light and as long as we are talking to europe and we hear there is a deal coming in a month from now it's not that they look at that, they look at the data today, but everything is so good. how could they not go with another hike in november? liz: i agree. good to see you. again, the doubt 80-- adding to the gains we sought the top of the hour. we are now up 124. at this moment yesterday , remember blake berman was at the white house and he said something is going on. we were told something big was brewing at the white house and the reporter should get to the rose garden, that there was possibly a so-called trade deal
made with the us and european union, but remember the devil is in the details and right now, we are waiting were details. us treasury secretary stephen mcgeechan actually, where wishy-washy with a so-called agreement and how done a deal it is. you get to listen. >> there was an agreement in principle. we have an outline-- i thought we had a deal we spent two hours negotiating and we went back-and-forth in a room. >> how will farmers feel that? >> it's a confiscated issue. >> there is no precise timetable set. liz: foxbusiness blake berman standing by at the white house. blake, is it a treaty or truce? >> i think right now it's in d-day truce is a good way to put a because keeping in mind it was just earlier this month when the president labeled the european
union as a faux. he said shortly after that there could be tremendous retribution coming to the european union, potentially. listen to him from earlier today because it was a different tune. now he is a seeming to position jean-claude juncker as potentially even an ally on the world stage. your was the president from earlier this afternoon in iowa. >> relationship with john claude who is the head, actually a very strong guy, very tough guy, but a good man who has done an incredible job pulling the countries together, but we just opened up europe for you farmers. of the relationship is very very good, so we are very happy. >> what a difference a couple weeks can make, but the retaliatory tariffs are still in place and companies are citing the steel and aluminum tariffs as the reason for poor performance-- performance or potential for poor performance.
just yesterday alone: announced it will raise prices in north america while gm, ford and fiat chrysler all lowered profit forecast for the year siding tariffs, but the administration does not see a link. here's what i posed to the treasury secretary going this morning. >> is their recognition from this white house that the tariffs are already doing lasting damage? >> no. we are monitoring this carefully. we are sympathetic that there are micro markets which have been attacked specifically and we are dealing with those. >> wilbur ross also said today he feels some of these companies generally speaking here all across the country are using these tariffs as an excuse. liz? liz: that's a possibility, also. blake, the economy is so good and they were all very positive in the previous quarter, so it makes you wonder if they are right with concern blake berman, thank you. regardless if it's a
treaty or truce you still cannot deny that we are on a path to something beyond a cease-fire when it comes to the trade war, but not so with china. in fact, we are about to tell you about two major developments that involve the chinese that indicate we have a completely opposite direction on that track, on that trade issue. in the meantime, roll out the red carpet. the closing bellringing and 47 minutes with the dow up 117. the crème de la creme stepping into the earnings spotlight in just about 50 minutes from now. amazon will take center stage with its latest quarterly acceptance speech. will tech investors breathe a sigh of relief following facebook's disastrous performance? our all-star panel joining us straightahead with a preview. last-minute prep before the big cameo. stick around, we are talking amazon between
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is on the road to a trillion dollar market, second only behind apple in this race. i say second, that's a change. ahead of the closing bell is a removed you should be making with amazon stock next resource group managing director and benchmark managing partner join us. kevin, you already bought today? at what price? >> 820-dollar level. on the already down so investors can get in at a better price than i did. liz: would you say by between now and the closing? >> absolutely. there is bed-- never been a better time to put money in amazon them now. liz: can you tell me how you see this comedy because it is really cooking at the moment? >> you are right, liz. i have been recommending it to foxbusiness viewers since it was 550. our target price was 21.50. retell, cloud, web service, etc. and while
facebook is falling flat amazon really doesn't have any competitors that can stop the monumental growth. liz: before people start firing up their schwab and american trade account i want to pick apart some of this. let me get to you, kevin. if we look at for example prime day, what would prime day have come in at? do they break that down and remember that site went down with such huge traffic. what you think happened there? will they hit the three plus billion dollar target? >> i think they could actually do more and it shows you how strong their e-commerce platform is that it actually got shut down signifying the demand. e-commerce sales are growing 16% year-over-year, yet account for less than 10% of overall retail sales and it can only grow from here. guess what amazon does, they are going to have the next leg of growth in advertising through the alexis, so when you
set collects a buy me this or that and it will only reinforce not only their shift in advertising, but their e-commerce platform. liz: about alexa? i don't want anyone looking, watching, listening. i have enough problems with two kids. gives us a sense of how meaningful alexa sales have become for amazon. >> liz, neither of us will have it, but many people will. it will be a 10 billion-dollar business by 2020. completely eclipse google's home products by a factor of approximately 10 times bigger for alexa than google's competitive products and as kevin referenced, a lot of good revenue opportunities, advertising and others and sporting good sales as they decline and sporting good retailers file for bankruptcy people are sitting on the couch and as you reference telling alexa what to do and that's
ordering from amazon so it's very complementary and creative in terms of driving amazon sales growth at a rate of 50 billion or more in terms of an increase. amazon sales increased each year to make it the fifth largest retailer just analyzing. liz: couch potato nation. you just painted a lovely picture of chico dust all over me sitting in the background or. the supreme court tax decision, does anyone see any headwind from that? >> no. it should not impact amazon or could they have already collecting sales taxes. the only thing it could impact is third-party distributors of amazon platform as they sell through other avenues, but let's break that down. almost half of all amazon sales are down through third-party distributors leading credence to their online marketplace or they don't even need to carry the cost and you were talking about alexa.
you can't avoid alexa anymore. it will be a deployed in all the merits around the country so it will be integrated in your lifestyle one way or another. liz: is there anything that worries you about amazon? i should ask that. >> liz, you are right about the supreme court decision. with walmart.com. and walmart's subsidiary , paying taxes to be quit is fully will affect amazon who has not been paying taxes in places like albuquerque, new mexico, pittsburgh, iowa and across the country in many places where they didn't have physical facilities so it will be on amount to a price increase through amazon's affiliate retailers, which is about half the business, but at this point's walmart is fighting fiercely. amazon will continue to win and the price impacts players like bj's wholesale club, walmart and those will
be the big winners going forward and a lot more bankruptcies sadly like toys "r" us and menton-- bond on an borders and circuit city. liz: i have to say props to kevin turkey were so right with our viewers back when we talked about facebook you said get out. it's been an issue, but is it a fine opportunity, kevin clay >> i don't think so in one of the reasons why is that advertising model is under threat not only from amazon, but also google so they will have a hard time. they should have seen this coming. now all of a sudden they are blindsided get out. management is not good. liz: kevin, kelly, bert you guys are awesome. thank you. very interesting. stay with foxbusiness, amazon tech-- second-quarter results come back "after the bell". adamant cheryl will will have all the action "after the bell". can we take a shot of the plane?
president trump has arrived understandably i believe. there it is. you are looking at air force one that just landed in illinois. as soon as the president gets off he will head to granite city with a huge crowd waiting to hear him at us steel and specifically plans that went from mothballs to doors opening wide. state soon. we will be right back with facts and more a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today.
liz: breaking news. president trump has just landed at st. louis international airport and will head over to a us steel mill in granite city, illinois to discuss trade and to discuss-- at the figure what's going on with steel. steel is where it all began with president trump's tariffs imposed in february that the scene for what's now a trade war with some countries. now us steel is bringing back a shuttered steel
mill back to life in granite city. president trump headed their prey victory lap. as he does here is some of the biggest us steel strauch-- stock in how it's traded since the tariff kicked in. ak of about a third of a percent took us steel down nearly 15%. new court upheld or 3% jeff flock is there in the room at the plant where this is all going to happen. what is the mood on the floor? has to be very upbeat. >> i will tell you, liz, if there is any place where the president is a clear winner it's in the steel industry. we are full of the people, about as many people as you can pack in here and some of these people are new hires. other guys have been here 20, 30 years and have seen the highs so high in the lows so low. do you think this will last? >> i hope it lasts. i think the companies invest a lot of money
into the plant. >> they would not invest that money if they didn't think it would last? >> i think it will last. >> are you worried if the tariffs get settled, the tariffs come off than maybe it goes away? >> well, we are just going to have to continue making a good product and being competitive. >> how many years do you have in, sir? >> 29. >> did you think you are done for at one point? >> yes, i did. i didn't think it would ever start backup. >> if you could say some -- something to the present, sometimes he watches, what would you say to him? >> thank you. thank you very much. it's great to be back. >> sometimes people worry that the steel workers are getting a break, some of the farmers, maybe. maybe you have some farm friends concerned about the impact of the tariffs on trade in general. what would you say?
>> i don't-- i hope it don't hurt them bad. i hope the tariffs do some good for them, you know everyone puts tariffs on as. >> do you feel like you have had your share of unfair trade practices? >> yeah, you know we got laid off in 2008. eight years before trump was terrible in our industry and now they are doing good. >> i appreciate it. thank you for sharing. would like that. thanks very much. appreciate your time. a lots of the fox friends in the crowd out here today. steelworkers, you know steelworkers union has typically been supportive of democratic causes, but here today maybe you see where the president will speak behind rolled coil steel , making it again
here. granite city, illinois. liz: 800 people were laid off when that us steel plant closed and to see it open is certainly i'm sure going to have quite a effect on everyone in granite city. >> in the whole town. this is a town that is a steel town and has been for decades. you know, we were here when it was bad and to see the difference now, i mean,-- liz: illinois went for hillary clinton and this is, by the way, the first-- >> i can't remember your name. >> i'm jeff flock. >> tell me your name. why are you here today? >> because i love president trollope and what to build a wall and have america be safe. make america great again and keep america great.
>> she was ready for her tv performance, wasn't she? >> i'm not shy, jeff. great to see you. >> thank you. liz: thank you. president trump has entered the limousine and he is headed to where jeff is at the moment and when he arrives foxbusiness will absolutely take that. he's heading to a us steel plant right there in granite city. what i was going to say is that this is his first visit to the state of illinois, since he was elected. this is a state that went for hillary clinton , but he has certainly gained a lot of friends in what has traditionally been a democratic stronghold, the steel workers union. we will take that shot when the president arrives in the market is up 133 points for the dow jones industrial, s&p 500 still down about seven. stay tuned. we are coming right back alerts -- wouldn't you like one from the market
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liz: as we wait on the president in granite city: noise we two major developments. in the us china tariff battle royale that seems to be setting out for longer collision course than first anticipated. china killed a major deal overnight between smart phone and an xp and making the two tech companies the latest casualties in ongoing dispute between us and china. ceo steve markoff saying in an interview the deal got quote caught up in a trade for. the stock is up 7% in part because he also said this won't stop the appetite for new acquisitions. they are still forging ahead, so while they have put on a great basis senator marco
rubio is peer is immediately renewing calls to sanction chinese telecom giant expressing via twitter long-term china is a bigger threat to america's security than russia adding when will we take it seriously. james roberts served 25 years in the us state department and is one of the heritage foundation's lead experts. us trade representative came out swinging today saying china is no longer-- is a longer-term problem than any other trade battle we face. how will these latest developments affect the current trade war with china cracks are they worse now? >> i think we have set the table with the agreement with the european union union which is recognition by the trump administration that trade is mutually beneficial and we are glad to see the agreement to restart talks heading towards zero tariffs. the non- auto sector is one of the first things they start with with
zero tariffs and if you remember yesterday with the news conference with president trump and juncker, president trump ran down a list of unfair trade practices all in debt china appeared they did not name china. it's interesting the two items, the two products the two sides announced yesterday both have really overtones, one on liquefied natural gas in that russia and the soybeans directly in debt china which has gone after our soybean producers causing the president to say we should spend even more taxpayer money to subsidize farmers. liz: i'm just wondering, if the points and it wasn't the whole point, but the point of having a breakthrough with the european union was in part just to show china we have got european union countries to kind of a band here, the chinese came out in the past couple of hours and said we will match any and all
terrorists that the us slaps on as. is that just whistling past the graveyard by the chinese or do they mean it? >> they could be talking tough. no one really knows what's going on in china because it's so nontransparent and no one really knows the financial condition. i think the chinese are a lot weaker than they think and i think if the us takes the same positive attitude to japan and korea, which was part of the transpacific partnership , if-- you know that would further isolate china and we could also adapted agreement and today if we could get a new nasa agreement that has an energy chapter and settle dispute mechanisms, those would be good things and send signals to china that the us is mending its offenses and maybe we at heritage thought this was an elk thought out trade war to begin with. you know, this really brings us back to where we were a couple years ago with the europeans,
but nevertheless we are back there. the new president of mexico pushes an agreement on nafta 2.0 at the same time and then china will maybe get the message. liz: may be. we asked our viewers the other day, which is more dangerous to us national security in mercedes-benz or cte, the chinese phone company and maybe one of their phones and senator rubio can basically say i told you so. last friday he ripped the decision by the us to lift the ban on us suppliers selling equipment to try night saying zte should be put out of visit-- business as they violated trade. did the us really think by lifting the sanctions on zte last week because the chinese wind and cried that there may be some understanding that they play nice with us because they didn't you could be that an xp deal >> i was surprised by that development and
when it comes to our national security and you know what our intelligence agencies are telling our government leaders that's ruling a different category and we have to pursue that as a country to protect ourselves. nevertheless, with these other trade tariffs that have been imposed i think it's time to recognize and it looks like the administration has done and they have heard a lot a pushback from many parts of the american economy that have been damaged by these tariffs that we have to rethink this, go back to our trading partners and allies and just kind of turn the page and let's get forward looking on ending this trade war. liz: james roberts of the heritage foundation, thank you very much. we are watching any developments out of china and we will keep everyone posted. a burrito with a side of trampled into unicorn frappe at chino. that's what you're going to get. we have that dow up 117.
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just facebook because facebook is not in the tao or in the russell or transports, so all those indexes are higher right now. pretty decent day. whether you are in the mood for mexican or a cold coffee beverage, investors hoping to be in for a treat when chipotle on the left-hand side of the screen and starbucks report earnings in just a few minutes pick let's go to nicole. >> 18 chipotle and tricking starbucks, i know they were two separate days, but they both looked delicious let's see the numbers, i mean, that's what everyone wants to know. coming up "after the bell" we will keep it here because we have the buildup going in. this is the busiest day of earning seasons thus far. chipotle right now as to the downside about one percentage. it's been a win-- win or lately, but the new ceo
came over from talk about and started doing marketing blitz. they have a loyalty program. the big picture is whether or not these things are working it had to close underperforming stores and they are expected to rise and comp sales. been there us starbucks. howard schultz said he said to take up his green apron after nearly 40 years. he stepped down from that lead role in many are wondering if he will run in the democratic party in some way shape or form. alsocommon this quarter they had the shuddering of stores in the afternoon for sensitivity training. stock is down about half of 1%. you can see the big drop it hasn't been particularly well as of late. the nestlé alliance and also don't forget last but not least they did get an uncharacteristic warning, so we will see
about pre-announcements. we will see about global comp sales. they may not be so great and maybe that's why they gave us that little heads up, unlike facebook who did not give anyone a facebook-- heads up and just gave everyone the whammy. liz: i'm totally jealous of cardi b now guacamole for life? that's worth a lot. earnings "after the bell". make sure you stay with fox business for that. time to go shopping, closing the ringing in about nine minutes with the dow up 112. whether you are looking to spend a hundred bucks or thousand dollars our next guest has some moneymakers for every budget's. we bust down the doors coming up. stay tuned ♪
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let's talk about the first cheap in an pricier ones. >> in terms of the cheap, we have a couple names would like, first dollar tree. what we like about is the best operator in the pewter dollar tree, because a dollar in the store. a nice treasure hunt for consumers. liz: you walk in thinking you need to things and you walk out with 32 things. >> the stock has been weak recently because they purchased family dollar a few years ago and that transaction has worked out great, yet. we think longer-term they can fix the family dollar stores. investors today are not paying much for dollar tree, so we could it's not june time to buy still and look at year to date. you would not be overpaying. >> is down significantly with noticed insiders of buying, three different board members putting money in the stock. good sign of management. liz: give us another one. >> and other one that we
think has sustainable high return on capital, it costs 500 million to a million to build a ship it has three large players. tend to see pricing power and higher margins it has been weak recently early around oil prices with oil around $70 a barrel. it's been a slight negative, but everything else about the liz: can't imagine what it cost to fill up a ship like that. >> very large numbers. a big part of their operating expense is oil. liz: that pe is 14. slightly richer. those that you feel are slightly richer valuation. >> market is 17. pretty big discount for carnival and dollar tree. in terms of other names we like, we like blackrock, a little more expensive, apple in terms of p-e ratio might be more expensive. in case of apple, strong balance sheet. 150 billion in net cash.
liz: i remember apple's pe was nine. it was less than two years ago. >> it has been a fairly cheap stock. people are being long in the tooth with iphone. how much more innovation is there in we think there is more innovation? we love the strength of the balance sheet. the key is downside protection. with strong balanced sheet, married with return on capital you get a strong -- liz: say about apple. i have a laptop. i gave in. i used to be all-in, hewlett-packard. >> huge install base. liz: i had to send it in for repair less than year after i got it. covered everything. even stuff that wasn't covered. very good experience. >> similar with apple. liz: berkshire b shares, what have we got? what is the pe? >> pe for berkshire is 15 times. a little bit richer than the others. what we like about that in terms of sum of the parts, monger and
buffett assembled, strong operating companies. competitive advantages. strong balance sheet. over 100 billion in cash on the books. liz: people should mark their calendars. august 30th, i will interview warren buffett one-on-one in new york. we'll talk about that. he never split the stock. the a-shares are 300 grand. they're certainly in the stellar stars up there. but do you ever think about life after warren buffett when he is no longer running the company? does that concern you as a shareholder? >> i think it does. that limited valuation to some degree. buffett turns 88. charlie monger is 94. there is rick of passing on. i don't think anyone can replace investment acumen and ability. we think discounted intrinsic value is quite strong. liz: lots of cash being made at company. lovely to have you, mark. good ideas all around.
we'll put emup on facebook.com/lizclaman. dow industrials closing at highest level since february. [closing bell rings] amazon earnings straight ahead. that will do it for the "claman countdown." don't go way. cheryl: liz, we have another action-packed hour for you. president trump set to make new comments on trade from newly opened steel mill in grand sit city, illinois. we'll bring you the comments live. the dow closing higher for the third straight day. look at the numbers on your screen. as you can see, the story not the same for the s&p but nasdaq hit hard by shares of facebook, tumbling into the close. hello, everybody, i'm cheryl casone in for melissa francis today. adam: i'm adam shapiro in for david asman. this is "after the bell." we're awaiting a big report from